Mortgage applications were on the rise last week, with applications for home purchases — viewed as a leading indicator of future home sales — moving up to their highest level since May 2010, the Mortgage Bankers Association reported. 

Mortgage applications for home purchases increased 2 percent last week, while applications for refinancings, which make up the biggest bulk of the index, jumped 8 percent. 

Overall, MBA’s mortgage application index increased 7 percent last week, reflecting both applications for purchase and refinancings. MBA’s index covers more than three-quarters of all mortgage applications in the country. 

MBA reported that the average rate on 30-year fixed-rate mortgages fell to 3.59 percent last week, its lowest point since December. 

Source: “U.S. Mortgage Applications Up 7% Last Week - MBA,” The Wall Street Journal (May 8, 2013)